...Analysis of Direct Cost November 27, 2011 Direct labor cost is the prices charged for the production of specific goods or services. Direct costs refer to materials, labor and expenses related to the production of a product. Direct labor is labor directly associated with the work being produced (Murphy, p. 98). Other direct labor is labor readily identifiable with a particular objective such as a contract and labor important enough to warrant identifying and measuring so we can keep up with its cost (Murphy, p.99). Companies use systematic procedures, work breakdown structure and phase diagrams to estimate direct labor cost. One of the most widely used methods to estimate labor cost is the work breakdown structure or WBS (Murphy, p.101). The phase diagram is very similar to the WBS except that the detail of the work is spread out over a longer time period. To effectively analyze direct labor cost, you need to establish a model or standard rate. The standard rate is an estimate of what you expect the direct cost of labor will be under normal conditions. To accurately measure direct labor cost, you must include all expenditures, not just wages. Two primary components of a model is the projected cost of one hour of direct labor and the number of labor hours required to produce one unit. Other direct costs are often the type of cost that the firm would normally charge as an indirect cost, but the proposed contract requires a large, unusual, or one-time expenditure for...
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...Introduction Costs fall into two categories: direct and indirect. Direct costs are those costs which can be attributed to a specific final cost objective(s); alternatively, indirect costs are those costs which have no specific cost objective. An example of a direct cost might be the costs associated with salaries of "hands-on" personnel, e.g., engineers supporting a particular project. An indirect cost might be the office supplies those engineers use, the cost of rent on a facility in which everyone (not just the engineers) works, utilities, etc. While the decision to treat a cost as indirect or direct may be difficult, it is important to treat such costs consistently in order that the costs are not "double-counted." In other words, if the salary of Sam, the engineer, is normally considered an indirect cost, it is calculated when the indirect costs are computed. If Sam suddenly charges work as a direct cost, I have counted Sam's salary twice, and am thus saddled with an overhead rate that may not be as competitive as if Sam were not included. Treatment of costs in a consistent manner is in consonance with commercial cost accounting as well as related government-unique accounting requirements Analyzing Other Direct Costs (ODC) One of the biggest challenges in analyzing other direct costs is ensuring that they have not been captured in another part of the total cost. As with labor and material costs, other direct costs are those costs that can be attributed to a...
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...DIRECT AND INDIRECT COSTS Costs are those expenses which are both direct and indirect expenses of operating a business. The general guideline for distinguishing costs is that direct costs are any expenses directly related to providing the product and/or service to the customer and are normally affected by volume, whereas indirect costs are those expenses necessary to maintain the operating business and are not affected by changes in the volume of business. In addition, a subcategory of direct costs breaks out the major expenses entailed in the direct production and service of the product. The following listing identifies the various expense areas of direct and indirect costs: Direct operating expense a. Linen, china, glass and flowers b. Costs of cleaning and associated supplies c. Employee uniforms and laundry costs d. Cooking equipment, utensils, and kitchen tools e. Restaurant decorations, including flowers f. Menus, wine lists, and other promotional material g. Licenses and permits Utility expense a. Heat, light and power including any type of energy use (gas, oil, electricity and other canned or bottled fuel used in restaurants) b. Water, ice and trash removal Administrative expense Costs directly related to the operation of the business management of the restaurant, including a. Telephone services and equipment rental b. Computer and data processing costs c. Office supplies and printed materials used in the business management of the operation d. Insurance...
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...of these dates turn sexually explicit. Call girls are usually seen as the highest paid prostitutes. There is usually little to no risk of being hurt by the client or arrested. The last type of prostitute is the house prostitute. These types of prostitutes are not normally found in the United States since prostitution is illegal but in countries where it is legal, prostitutes are licensed and pay taxes (Schmalleger, 2012). Reference Schmalleger, F. (2012). Juvenile justice in America. (6th ed., pp. 361-363). Upper Saddle River, New Jersey: Pearson Education, INC. There are a number of direct and indirect costs of using illegal drugs. About $65 billion is spent annually on illegal drugs (Schmalleger, 2012). Support services, drug prevention, short-stay hospitals, interdiction, and federal drug expenditures are just a few of the direct cost of illegal drug use. Indirect cost include but are not limited to...
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...Direct Marketing According to the official definition of the Direct Marketing Association (DMA), direct marketing is an "interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location." While there are many other possible definitions, the DMA captures the four basic concepts that set direct marketing apart from traditional marketing. The notion of interactivity, or one-to-one communication between the marketer and the prospect or customer, is one factor that distinguishes direct marketing keting from general advertising and other types of marketing. Direct marketing makes an offer and asks for a response. By developing a history of offers and responses, direct marketers acquire knowledge of their prospects and customers, resulting in more effective targeting. Measurability also sets direct marketing apart from general advertising and other forms of marketing. Direct marketers can measure the response to any offer. Measurability allows direct marketers to test a variety of lists, offers, media—virtually any aspect of a campaign—in order to allocate marketing resources to the most effective combination of elements. Direct marketing uses a variety of media, including mail, magazine ads, newspaper ads, television and radio spots, infomercials (also television but longer format), free standing inserts (FSIs), and card decks. This flexibility allows direct marketing to provide interactivity and measurability...
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...Direct marketing From Wikipedia, the free encyclopedia For distribution and retail sales of comic books, see direct market. | This article needs attention from an expert on the subject. Please add a reason or a talk parameter to this template to explain the issue with the article. Consider associating this request with a WikiProject. (February 2011) | Marketing | Key concepts | Product marketing Pricing DistributionService Retail Brand managementAccount-based marketing EthicsEffectiveness Research SegmentationStrategy Activation ManagementDominance Marketing operations | Promotional contents | Advertising Branding Underwriting spotDirect marketing Personal salesProduct placement PublicitySales promotion Sex in advertisingLoyalty marketing Mobile marketingPremiums Prizes | Promotional media | Printing Publication BroadcastingOut-of-home advertising InternetPoint of sale Merchandise Digital marketing In-game advertising Product demonstration Word-of-mouth Brand ambassadorDrip marketing Visual merchandising | v t e | | Wikibooks has a book on the topic ofMarketing | Direct marketing is a channel-agnostic form of advertising that allows businesses and nonprofits to communicate straight to the customer, with advertising techniques such as mobile messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional letters, and outdoor advertising. Direct marketing messages emphasize a focus on the customer, data...
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...The first thing that must be done is to assess if our industry or sector is susceptible to the use of direct mailing as an aid to the generation of sales leads – so we will need a market feasibility study which will include: Description of the Industry Current Market Analysis Competition Anticipated Future Market Potential Potential Buyers and Sources of Revenues Sales Projections If the conclusion is that we should undertake a direct-mailing campaign, we will have had to face up to and overturn the following adverse arguments. We must not expect too much and must use calculations to back up the wisdom of what we are doing. When profits result from a successful marketing campaign, it nevertheless almost always reflects a tiny percentage of returns, and this return must be subject to calculation and assessment. For example, if we send out 1,000 postcards at a cost of €750 (printing and postage) we need to generate enough sales leads to at least pay for the campaign. If we are a clothing boutique say, and our average customer spends €100 per visit we would need to get 7 or 8 new average customers to break even. Direct mail marketing is about building new relationships and getting the word out about the business – we are unlikely to get rich from it. Another problem may be this; if location is important, and we send out inserts through a local direct-mail advertising company we will reach potential customers in our local community. But we will also waste...
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...1. A. What are Dell’s FSAs? B. What are the macro-level requiremets for the direct sales model to be successful? C. What are the major advantages of the direct model, compared with the traditional channel strategy? A. Dell’s biggest FSAs are related to the “three golden dell rules”: Firstly ‘never sell indirect’, which is related to the direct sell model of Dell. This system is unique in the Computer Business and gives Dell an advantage on the market. The customer can get a customized computer, which is assembled related to the customers’ needs and order. Secondly ‘disdain inventory’, which is about the little amount of inventory in Dell and a good relationship to its high quality suppliers. Through the “assemble-to-order” system at Dell, they don’t need large inventory and can sell their products cheaper than their competitors. The third FSA is ‘always listen to the customer’. Because of the system, in which is no distributor in-between Dell and the customer, Dell has directly contact with their customers, which creates a better relationship. Through this Dell gets a better understanding of the customers’ needs.B. Most of the customers of Dell (Individuals and Companies) are experienced in the Computer business, so they often know exactly what they need and want. Those customers don’t need guidance, in form from face-to-face communication, for example in an electronic retailer. In addition to that it’s important for Dell to have suppliers, who are trustworthy and reliable...
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...“The Effects of Direct Selling Strategy to the Marketing Success of Marikina Shoe Exchange in Marikina City” Chapter 1 The Problem and It’s Background A. Introduction Direct selling has been making the greatest impact on the marketing aspect today. Direct selling is the oldest channel of distribution. It exists since ages; fulfilling consumer’s basic need for trade and the ability to communicate with the goods they exchange. From the seller's point of view, the major attraction of direct selling is offering an equal and flexible income opportunity to men and women, across all ages, levels of experience and social origins. The direct selling industry offers high level standards of consumer protection while enhancing entrepreneurship for direct sellers. Markets, in their fundamental stages, were meeting places for customers and direct sellers. Frequently, the seller used the market as one of his stopping points before continuing his village-to-village journey dealing. Direct selling offered opportunities for many who had previously run into barriers because of age, education and gender. The growth of the industry allowed many to become successful where no opportunity has existed before. Today, at the beginning of the 21st century, the customer still benefits from a personal and convenient way of purchasing products. The internet has become an important element of direct selling essentially giving each direct seller a worldwide customer base. Direct sellers have been empowered...
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...Article Rebuttal January Prather BCOM/275 Business Communications & Critical Thinking January 13, 2013 Francis Demasi I am writing about an article I read called “Scam of the Month- Visalus Sciences.” Visalus Sciences is a health and wellness direct selling company that was founded in 2005. Visalus sells supplements, shakes, and other drinks all designed to help people lose weight, get in shape, fight aging, support immune system, boost metabolism, manage appetite, increase energy and overall get healthier. In the article the writer states that Visalus Sciences is a scam. The writer claims it is a get rich quick scheme. The writer attempts to argue his case by saying that Visalus products are not sold in stores such as GNC so the products are unknown and questionable. He states that distributors in Visalus are required to sell the products and only make commission off of every sale past $200. He claims that if distributors have no buyers, they would have to start buying extra products for themselves or to resell not earning any money. This instead, he says makes the company Visalus money and not the distributors. He also claims that distributors have to rip people off to have success in Visalus and will never make any real money. He states and I quote, “Unfortunately, Visalus preys on the unfortunate and uneducated with false hope.” I do not agree with this article because I am very familiar with Visalus. I have used their products and have a few friends who...
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... * Application * Database * Physical storage * Till now, HW and SW things were bought separately * Other players in the market: * Leading database management company: Oracle (revenue $10 billion) * Leading storage company: EMC ($8.9 billion) * 95% of the time PC was used to access the systems * There were different parties involved in the purchase decisions and as such the thinking was IT guys for SW, DBA’s for database and network admin for networks * For applications, BU and IT will together make the purchase decision. While BU were predominantly concerned about the funcationaliy of the application, IT will worry about how much cost it takes maintain the whole thing, are the vendors trustworthy and all that * SW Performance: * All applications were thoroughly tested before deployment * For applications using database, main thing were the effectiveness and efficiency * As the application interact with lot of different things and the environment can also change, it was typically difficult for SW application manufacturer to predict the correct performance * Market for performance management and availability software: * Current market size is around $2.4 billion and...
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...CRM- Case analysis Alpen bank Submitted by Team Pandavas (PGPME Group 2) Bhawna Gupta (P131011) Deepak C (P131015) Esha Pandey (P131016) Magdalene (P131021) Shashank (P131032) Overview: Alpen bank is one of the prominent banks headquartered in Zurich. The bank was known in the banking circles with serving mostly affluent clientele. Shopping with cash was a trend that was getting altered soon with the changing conditions of advancement in the European countries and most of them were becoming synonymous with high end customers going for shopping with credit and debit cards, A fact being quoted in the case that in 2006, the bank expected the credit and debit category growing by 35%. Alpen bank was looking at this lucrative proposition of expansion by trying to capture this segment by launching its credit card business in Romania. Romania being a small and low income country offered less possibilities for the growth of credit card business but as the country became the member of European Union it started becoming a lucrative market for the development of such products. The major players operating in credit card business in Romania were Romanian bank for Development having the largest number of customer base (606000 credit cards) while Raifessen bank was the second largest bank in this segment with the credit card utilization standing at 70%. As a result the Alpen Bank was looking for possibilities where they can tap a significant share of credit card business in Romania...
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...The 100% Export Oriented Units (EOUs) are growth engine of exports and at present there are more than 1,800 EOUs in operation although the government, instead of encouraging the units to start EOUs, offered special schemes to rehabilitate or re-vitalize the existing EPZ/FTZ units by converting them into SEZ units. The EOU sector is engaged in manufacturing of goods, located predominantly in rural or semi-urban area, offering employment opportunity to local people, develop self infrastructure without any subsidy or grant from the government, consistently showing growth in investment, export performance and Net Foreign Exchange earnings. However, like EPZ/FTZ scheme, introduced simultaneously, to achieve quantum growth in export performance and Net Foreign Exchange earnings, the EOU scheme could not attract more entrepreneurs, due to various restrictions imposed under various regulations. The initiatives taken by the government to undo such restrictive measures started yielding results by consistent growth in number of units operating under this scheme. When compared with the performance of government sponsored EPZ/FTZ schemes, the EOU sector did show commendable growth. In spite of this, the government, instead of encouraging the units to start EOUs, offered special schemes to rehabilitate or re-vitalize the existing EPZ/FTZ units by converting them into SEZ units. The new SEZs approved will take another 3-4 years to commence their full-fledged operations. The Government is...
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...Direct Marketing by Geoff Lancaster © 1 Direct marketing explained Direct marketing is a collection of techniques that enables organisations to market goods and services directly to customers (business-to-customers or B2C). It is a pro-active approach to marketing that takes the product and/or service to potential customers rather than waiting for them to come to a store or other point of access. It is a form of ‘non-shop’ shopping and is sometimes referred to as ‘precision marketing’ or ‘one-to-one’ marketing. Rather than the marketing firm sending out a general communication or sales message to a large group of potential customers, even if these constitute a well-defined market segment, direct marketing tends to target specific individuals or households. In a business-to-business (B2B) context this would be an individual or a specific organisation or firm. Direct marketing is not just concerned with marketing communications. It is also concerned with distribution. In using direct marketing, the firm is making a choice to cut out the use of marketing intermediaries and sell the product or service direct to customers. This has implications for both channels of distribution and logistical decisions. Direct marketing comes in a variety of forms. It is one of the fastest growing areas of marketing and is being propelled by technical advances, particularly in the field of computer technology and the www. Academics and consultants have taken up direct marketing with enthusiasm...
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...To: Dr. Andrew Hardy, CEO From: ky Date: February 22, 2011 Re: New List Source for the Summer Catalog Mailing Memo It has been brought to my attention in our weekly meeting that the children’s clothing (infant to age 13) catalog division has saturated the current mailing list. As of today, the catalog has been mailed to customers who were listed on the response list which is the direct mail buyers of similar products. So, I am embarrassed to say this but our department has exhausted the list choices, and now we are faced with the decision to go beyond the response lists and we must develop a new compiled list to test in the summer mailings. This list must be complete and ready to launch by May 31, 2011. In our meeting, we decided to focus on the following areas to help develop and launch the new list for the summer mailings. The four areas are…learning about the demographics of our customers, the kinds of list that would be tested, how many list segments would be tested for the summer mailings, and can there be a list developed to include postal address as well as email address to execute a multichannel marketing campaign. The person to head this project is Fred Miller and his contact information is listed in the directory for all questions on this project. CUSTOMER DEMOGRAPHICS In developing a demographic profile, we will determine when and where advertising should be placed to achieve maximum results. In such cases, it is important that the advertising...
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